China has made progress in rebalancing its economy towards domestic consumption and away from exports even though its currency remains pegged to the dollar, Tim Geithner, US Treasury secretary, said as he prepared for the start of the annual US-China summit.

Adopting a conciliatory tone on Sunday ahead of two days of meetings in Beijing starting on Monday, Mr Geithner said China had relaxed some of the restrictions facing multinationals that have angered parts of the US business community in China.

The US-China summit is an event that used to involve US lectures about open markets but since the financial crisis in 2008 has reflected a more balanced economic relationship. Beijing is likely to use the forum to air its concerns about the rising US budget deficit.

Mr Geithner, with Hillary Clinton, secretary of state, is leading more than a dozen senior officials for the strategic and economic dialogue, which was designed to discuss long-term problems but which may be buffeted by the more immediate issues of North Korea and Iran.